That was off topic, I know, but I figured you'd get around to it at some point.

Are severence packages included in Personal Income calculations?

Severance packages are ordinary income and, in fact, in most states you cannot even file for unemployment until the severance is bled off. They use your last income to calculate how long that is. So if you get six months severance, you are considered employed for that six months because, in effect you are. You just got paid to job search.

These guys are doing everything they can to postpone the inevitable (I suspect we will have a huge and chaotic unwinding shortly after the next President is sworn in). The same philosophical mindset that drives the Iraq debacle is driving economic policy: Official denial of reality in order to continue the systemic looting of the Treasury.

A rational response by our government would be to stem the tide of loss to the taxpayer - not to ratchet it up higher at every opportunity.

We are being scammed.

When will someone at the Lockhart home hide his car keys so he can't go to work and screw things up even further?

Marcus I would disagree with you on two points. The great unwinding is not going to wait for the next president. It is happening now, at first slowly, but it will pick up steam a bit.

And the second is that I don't see the scam at all. I'm the sebastian of Fed policy. I think they are actually doing a fantastic job of keeping order and assisting in the orderly unwind by whatever creative means they can. Whether the unwind cooperates with them, however, remeains to be seen. That is what I worry about.

were either all subprime or all prime

everyone should get the same rate if the govvie is "the" market

"Effectively they have become the lender of first, last and every resort."

I am truly sickened by this new development where Fannie and Freddie are making loans to resorts. They are supposed to make loans for housing, not Club Med or the Sandals resorts! This is getting out of control in a hurry!

-kidding-

Bill M:

Thanks. I am, however, only a ghost of my former self. ; )

Ipodius:

We'll see what happens between now and Jan., 2009. No matter what, I think we'll have a major "readjustment" (yikes!) then.

As for the Fed's (Shadow Government's) actions, I think that they could have done many things to battle the trends, but they chose to concentrate on the top-tier money losers. In doing so, they have played into the hands of the culpable.

These guys will not spend the money they are being given (forgiven?), they will hoard it. They will take it overseas. The taxpayer will bear the brunt of less money and horrendous debt, both personal and national.

Better to have actual helicopters drop real dollars to the populace than to precision bomb the same dollars directly into the pockets of the thieves.

As in the same vein when Citigroup said it was going to "lighten" it's exposure by selling $45b in mortgages securities...

I asked the same question:

To whom are they going to sell to??

Just like all the homeowners who want to sell at a still inflated price....denial goes all the way to the top floor at C too.

Marcus-

could not agree more......

Ciao
MS

"US e-CON-omy -- a criminal enterprise at a gigantic scale supported by force.

People need to come to terms with the real nature of the American system. It puts all the criminal enterprises in history to shame.

Jas"

Jas, seriously, it's great. We all got it. Now please go and spend your efforts posting this on any Fox News blog. I'm sure Hannity or O'Reilly have some blogs that you would be speaking to the needy. I'm sure their comments sections need someone just like you.

Go there, and give 'em hell. Don't reference us, please, but rest assured we're completely behind you in your pontificatory endeavors.

Go, Jas, Go beyond and spread the word!!

[Key word here is beyond.]

Hey,

I need help on another CR thread!! An invasion of clowns is distorting reality.

Help!

Re: Federal Reserve Governor Frederic S. Mishkin spoke tonight